All you seem to read about these days is that the cost of things are going up. For instance, the price of petrol and diesel seems to fluctuate so much and you have probably seen increases in your gas and electricity bills. When you open the envelope containing your renewal for your car insurance you are expecting only one thing – another increase!
You will be pleased to hear that average car insurance premiums seem to be on the way down based upon a recent survey. The Confused.com/Towers Watson Car Insurance Price Index that covers the three months between April to June 2013 shows a drop of almost 8% in the average cost of premium quotes for fully comprehensive motor insurance.
This means that the UK average price for such insurance cover has fallen below £700 per annum and this is the first occasion this has taken place since around the middle of 2010. Interestingly, this drop has happened for six quarters in a row. You will also be pleased to note that, during the last 12 months, premiums have dropped by 14.9%.
If you favour a car insurance policy that covers you for third party, fire and theft you will also be pleased to read that in the second quarter of 2013 prices dropped by 5.2% resulting in a drop in the last 12 months by 3.5%.
A reason for this drop could be that insurance companies are forecasting significant savings being made in respect of legal and claims costs due to the Legal Aid, Sentencing and Punishment of Offenders (Laspo) Act. Another reason could be due to the increased interest in telematics insurance and the intention to tighten up on false whiplash claims.
The survey revealed that the people to benefit most were young male motorists in the 17 to 20 year age bracket. In the last year they have seen average car insurance premiums drop by a substantial 30% plus. Young women drivers have seen a drop of 11.6% in the second quarter of 2013 having previously seen two quarterly price increases.